The newest viewpoint ong whatever else, there have been further legal circumstances or legal amendments you to happen on the activities discussed in the opinion.
Standard Municipal Law 10(3), 11(2): The terms from General Municipal Laws 10(1)(h) you to definitely restriction so you can 3 months the term regarding a keen qualified letter off credit given given that protection to own state places and financial investments do not connect with an irrevocable page regarding borrowing approved from the a being qualified federal mortgage bank.
Specifically, you may well ask if the specifications away from Standard Municipal Rules 10(1)(h) one to fundamentally restrict to help you ninety days the definition of regarding an qualified page of borrowing from the bank awarded because the shelter to possess state deposits and you will investments pertains to a keen irrevocable page away from borrowing provided because of the an enthusiastic FHLB.
General Civil Legislation 10 and eleven regulate the newest deposit and you can short-term financing away from funds of the regional governing bodies, in addition to areas. Lower than General Municipal Law 10 Columbus savings and installment loan and you will 11, all the dumps and investments over the quantity insured under conditions of your Federal Put Insurance Act step one should be safeguarded prior to Standard Civil Laws 10(3) (Standard Civil Legislation 10, 11).
This is exactly as a result for the inquiry regarding the access to a page away from borrowing given because of the a federal financial financial (hereinafter FHLB) due to the fact coverage to have state deposits
Standard Civil Legislation 10(3) provides several choices for securing eg too much number, for instance the invited regarding an enthusiastic qualified page of borrowing, payable to your state government, as the safeguards into the payment of a single hundred 40 percent, of the aggregate amount of societal deposits on state, and you may decided focus (General Municipal Rules 10[c][i]). Qualified letter of borrowing is placed for this purpose generally speaking Civil Legislation 10(1)(h) so you’re able to mean:
[A]n irrevocable letter of credit issued in favor of the local government for an expression not to ever meet or exceed ninety days because of the a lender (other than the bank with which the money is being deposited or invested) whose commercial paper and other unsecured short-term debt obligations (or, in the case of a bank which is the principal subsidiary of a holding company, whose holding company’s commercial paper and other unsecured short-term debt obligations) are rated in one of the three highest rating categories (based on the credit of such bank or holding company) by at least one nationally recognized statistical rating organization or by a bank (other than the bank with which the money is being deposited or invested) that is [in compliance] with applicable federal minimum risk-based capital requirements (emphasis added).
Civil Loans — Dumps and you can Investments (label out-of an irrevocable letter of borrowing issued because the shelter from the a being qualified government mortgage financial)
For purposes of General Municipal Law 10, a bank is defined to mean a national banking association (see 12 USC 21 et seq.) or a corporation, other than a trust company, organized under or subject to the provisions of article 3 of the New York State Banking Law (General Municipal Law 10[d]; Banking Law 2). FHLBs, which are supervised by the Federal Housing Finance Board, are separate regional corporations, owned by those savings and loan associations, cooperative banks, homestead associations, insurance companies, savings bank, and other insured depository institutions within the region that are eligible and have become members of the FHLB (12 USC 1422a, 1424, 1426, 1432). 2 As such, they do not fall within the definition of bank for purposes of acceptance of an eligible letter of credit under section 10 of the General Municipal Law.
General Civil Rules 10(3)(c) are revised during the 2002, but not, to help you especially site brand new greet of the regional governing bodies out of a keen irrevocable letter of borrowing from the bank approved from the a keen FHLB so you can secure an excessive amount of dumps (L 2002, ch 615, energetic endment plus renumbered current paragraph (c) out-of subdivision 3 regarding section ten, due to the fact the newest subparagraph (c)(i).